When you buy your first classic car, you need to consider where it will be located and how you will insure it.
It doesn’t matter if your classic car is a Ford Capri 3L from 1970 or a used Morris Minor from the Sixties. What matters is that you have the best classic car insurance that covers you and your unique risks, at a price that won’t break your bank!
If you’ve never owned a classic vehicle before, it’s important to know that there are some key differences between what we call a standard policy for car insurance and the coverage offered by a specialist insurer.
It is important to determine whether your car is covered under a classic policy. You could ask the previous owner if it was covered by classic car insurance and which company.
Different insurance companies may have different definitions about the types and age of vehicles that are covered by this type of coverage.
One provider might not cover what you need. This information is available on most websites of classic car insurers. You can also search the web to see if you are eligible with different insurance companies.
You need to confirm that the car is eligible for coverage and whether any restrictions apply to your driving habits.
The main difference between a standard policy, and the ones offered by classic car specialists, is how you use your classic automobile, and more specifically, how often. Although older cars will be covered by the major insurers and price comparison websites, they will still have to pay an extra premium due to their age. They may also charge a premium if the vehicle’s replacement parts are considered too expensive.
Additionally, you will only receive the current market value replacement for a car that is covered under a mainstream insurance policy.
A standard car insurance policy covers a replacement of like for like. The market value of the vehicle is usually taken from a car price magazine such as the UK’s Glasses Guide. The market value of the car at the time you write it off will determine how much you receive. This is an annual depreciating amount. If you have a classic vehicle and insure it with a standard policy, this will result in undervaluation and underinsurance of its true value. Also, you won’t be offered salvage. A classic car that can be repaired is often considered a write off because it is too expensive for the Insurer.
You have the option of purchasing a specialist policy for classic cars.
An agreed value amount is the amount the insurance company will pay for a claim that results from a writeoff. This is an important benefit to classic insurance policies that cover classics. It ensures that you are properly covered and that your classic will be able to receive the necessary specialist repairs should it need them. You should also keep in mind that even agreed valuation policies can change. To avoid market fluctuations, ensure that the value of your classic is protected for a set period.
The Classic Car Insurance policies are tailored to meet the needs of collectible cars. In effect, the valuation is a rating factor that determines the condition of the vehicle.
The second major difference between classic and standard policies lies in how you are permitted to use your vehicle under the terms of the agreement. This type of vehicle insurance was originally designed for classic car owners who don’t use them often.
Classic car policies include a limit on mileage. This clause covers only a certain amount of miles per annum. There will be limits on how far your classic can go, depending on which specialist car insurance company is used. While some providers only cover a few thousand miles per annum, others offer coverage up to ten thousands. These policies are reflective of the fact that many drivers use classic cars to get around.
It is important to shop around for car insurance and compare prices. There are many online providers that specialize in classic insurance and many schemes specifically designed for classic owners. You can compare the premiums of these providers with those found on price comparison sites. But, in order to avoid disappointment, make sure you understand the differences between policy coverages.
